In a major setback for the Central Bureau of Investigation (CBI), a special court in Mumbai has acquitted gangster Chhota Rajan in a two-decade-old case related to alleged threats issued to a builder.

The court observed that the prosecution failed to establish Rajan’s involvement, as no incriminating evidence emerged during the witness testimonies.

Despite the acquittal, Rajan will remain lodged in Tihar Jail, where he is currently serving a life sentence for the 2011 murder of Mumbai journalist J Dey.

Delivering the verdict on Thursday, Special Judge A.M. Patil of the Maharashtra Control of Organised Crime Act (MCOCA) court highlighted inconsistencies in the prosecution's case. The judge noted that the prosecution’s most credible witness, Irshad Shaikh, could not definitively confirm that the threatening phone call he received had come from Rajan himself.

According to the CBI, real estate developer Nandkumar Harchandani had allegedly received threats in Rajan’s name, warning him to clear dues supposedly owed to certain businessmen. The prosecution claimed Rajan was displeased over the financial dispute and conspired to intimidate Harchandani into halting construction work at his site.

In September 2004, seven unidentified individuals reportedly stormed Harchandani’s office and opened fire at his accountant, who narrowly escaped injury. However, the court found the eyewitness testimonies insufficient to link Rajan to the attack.

"The most reliable witness, Irshad Shaikh, admitted during cross-examination that he was not certain whether it was Chhota Rajan on the call or someone else. This admission strikes at the core of the prosecution’s case," the court noted.

Concluding the trial, the court held that the prosecution had failed to prove the gangster’s guilt beyond reasonable doubt and ordered Rajan’s acquittal in the case.